Notice of Illegal Non-Compete Agreements: Deadline to Comply

We previously reported earlier that beginning on January 1, 2024, any employer that enters into a non-compete agreement or includes non-compete terms (which may include non-solicitation terms) in an agreement with an employee or any former employee employed after January 1, 2022, must provide written notice to such involved employee or former employee stating that the restrictive covenant terms are not enforceable.

The written notice must be individualized to the employee or former employee and delivered to the person’s last known address and email address. THE DEADLINE FOR EMPLOYERS TO SEND THE NOTICE IS FEBRUARY 14, 2024.

California contract law already refuses to enforce restrictive covenants such as non-compete agreements in the employment context. This new law goes a step further by making the entering into non-competes illegal (opposed to being unenforceable). Penalties for noncompliance include civil penalties of up to $2,500 for each violation, injunctive relief or the recovery of actual damages.

IF YOU THINK THAT YOU HAVE NON-COMPETE OR NON-SOLICITATION LANGUAGE IN ANY EMPLOYMENT AGREEMENTS AND WILL NEED TO SEND THE NOTICE, please contact Luna Hernandez at (714) 972-2333 or or Kurtis Urien at (714) 972-2333 or, immediately.